7  ^ 

GIF':  .  ^ 

APR  94  'Sie 


^oc^  STP 


No.  64. 

Board  of 
Estimate  and  Apportionment 


OFFICE    OF     CHI£F    CNGINCCR 


n 


Report  by  the 

DIVISION  OF  FRANCHISES 

■"upon  the  application -ef-tire 


MERCHANTS'  REFRIGERATING  COMPANY 

for  a  franchise  to  construct,  maintain  and  operate  conduits  for 

refrigeration  purposes  in  certain  districts  in  the 

Borough  of  Manhattan,  with  suggestions 

as  to  the  proposed  form  of 

contract. 


JUNE    25,    1910 


Rir  1947 


MARTIN  f\.  r\R(WN 


•IEW'v\TOR» 


1 


Board  of   Estimate  and   Apportionment 
Division  of  Franchises, 

June  25,  1910, 
Mr.  Nelson  P.  Lewis,  Chief  Engineer: 

Sir— Under  date  of  December  23,  1909,  the  Merchants'  Refrigerating  Company, 
with  offices  at  Nos.  161  and  163  Chambers  street,  in  the  Borough  of  Manhattan,  ad- 
dressed a  communication  to  the  Board  to  the  effect  that  the  Company  had  just  been 
apprised  of  the  fact  that  a  final  public  hearing  was  pending  on  the  application  of  the 
Harrison  Street  Cold  Storage  Company  for  a  franchise  to  construct,  maintain  and 
operate  conduits  for  the  purpose  of  distributing  refrigeration  to  consumers. 

The  communication  staled  tb.it  as  the  Merchants'  Company  was  and  had  for  several 
years  been  operating  a  similar  bu.sincss  within  several  of  the  streets  included  within 
the  districts  covered  by  the  proposed  grant  to  the  Harrison  Street  Company,  it,  the 
Merchants'  Company,  submitted  that  if  the  franchise  applied  for  be  granted  to  the 
Harrison  Street  Company  that  it  be  granted  without  prejudice  to  the  rights  of  the 
Merchants'  Company,  and  that  it  intended  to  make  application  forthwith  for  a  franchise 
to  authorize  the  continued  maintenance  of  the  pipes  which  it  bad  already  constructed. 

This  communication  was  presented  to  the  Board  at  its  meeting  of  January  21, 
1910,  and  with  it  a  report  of  this  Division  calling  attention  to  the  fact  that  that  the 
Merchants'  Company  had  no  rights  whatever  to  use  the  streets  for  the  purpose  of  main- 
taining pipes,  and  further,  that  the  City  was  not  precluded  by  the  franchise  of  the 
Harrison  Street  Company  (which  had  meanwhile  been  granted)  from  making  furtlu-r 
grants  of  a  similar  nature  within  the  districts  covered  by  that  franchise. 

It  was  recommended  that  the  Board  adopt  a  resolution  directing  the  Merchants' 
Company  to  present  a  petition  requesting  a  franchise  on  or  before  January  31.  This 
resolution  was  adopted  as  recommended,  and  the  Company,  under  date  of  January  27, 
presented  its  petition  for  a  franchise  in  the  following  streets  in  the  Borough  of  Man- 
hattan : 

Warren  street,  between  West  Broadway  and  Greenwich  street;  Chambers  street, 
between  Hudson  street  and  Greenwich  street;  Readc  street,  between  Hudson  and 
Greenwich  streets;  Grtenwich  street,  between  Reade  and  Jay  streets;  Duane  street, 
between  Greenwich  and  Washington  streets;  Washington  street,  between  Duane  street 
and  Jay  street;  Jay  street,  between  Greenwich  and  West  streets;  North  Moore  street, 
between  Varick  anil  lliuNon  streets,  and  in  such  further  territory  as  might  be  agreed 
upon. 


This  petition  was  presented  to  tlic  linard  at  its  meeting  of  February  4,  1910.  on 
which  tlate  the  matter  was  referred  to  the  Chief  Engineer  for  investigation  and  report 

Under  date  of  July  10,  1905,  this  Company  had  made  a  previous  application  for 
a  franchise  to  construct  and  maintain  a  conduit  for  refrigeration  purposes  in  Green- 
wich and  Warren  streets  from  its  premises  at  No.  291  Greenwich  street  to  No.  104 
VV'arren  street  and  No.  271  Washington  street.  This  apphcation  was  presented  to  the 
Board  at  its  meeting  of  July  14,  1905,  and  the  preliminary  hearing  set  for  September 
29.  1905,  on  wliich  date  tlie  matter  was  referred  to  the  Comptroller  for  investigation 
and  report,  and  also  to  the  President  of  the  Borougli  of  Manhattan. 

Subsequently  the  matter  was  taken  up  by  the  Bureau  of  Franchises  of  the  Comp- 
troller's oflFice.  and  the  Company  was  requested  to  furnish  certain  information  for 
the  purpose  of  making  a  report.  This  information  was  never  received  from  the  Com- 
pany, and  negotiations  were  discontinued.  No  report  was  ever  made  either  by  the 
Comptroller  or  the  President  of  the  Borough  of  Manhattan. 

On  February  4,  1910,  the  present  Board  adopted  a  resolution  withdrawing  nil 
petitions  which  had  been  referred  to  Select  Committees  by  the  former  Board,  nnd  rc 
ferring  the  same  to  the  Division  of  Franchises  for  reconsideration  and  report ;  among 
them  was  the  petition  of  the  Merchants'  Company,  last  above  named,  and  on  February 
IS,  this  Division  presented  a  report  to  the  Board  recommending  in  view  of  the  later 
action  of  the  Merchants'  Company  in  presenting  the  petition  of  January  27,  1910,  that 
the  application  presented  July  14,  1905,  be  denied,  thus  clearing  the  record  and  allowing 
of  the  matter  being  considered  as  a  whole  under  the  later  petition.  A  resolution  to  this 
effect  was  adopted. 

History  of  the  Company. 
The  Merchants'  Refrigerating  Company  was  incorporated  under  the  Business  Cor- 
porations Law  by  articles  filed  May  21,  1894,  for  the  purpose  of  "Manufacture  of 
ice,  the  cooling  of  air  by  mechanical  apparatus  and  mechanical  process  and  the  pre- 
servation and  care  of  perishable  and  other  merchandise  as  well  as  all  business  inci- 
dental thereto  or  connected  therewith." 

Its  capital  stock  was  fixed  at  $300,000.  and  the  term  of  existence  fifty  years. 

The  Company  has  two  plants,  one  at  Nos.  142}^  and  144  Reade  street  and  the 
other  at  Nos,  35  and  il  North  Moore  street,  and  besides  distributing  refrigeration 
also  maintains  several  storage  warehouses  in  the  vicinity  of  its  plants.  It  maintains 
at  present  about  nine  hundred  feet  of  conduit  in  the  streets  of  a  diameter  varying  from 
six  to  twelve  inches  enclosing  pipes  of  a  diameter  varying  from  two  to  six  inches. 
These  pipes  were  constructed  by  boring  or  driving  underground  during  the  period  be- 
tween 1892  and  1909.  The  conduits  are  of  wrought  iron,  as  are  also  the  pipes  therein 
contained,  and  the  latter  are  capable  of  a  maximum  pressure  of  two  hundred  and  fifty 
to  three  hundred  pounds  per  square  inch,  while  the  actual  pressure  to  which  they  arc 
subjected  while  in  use  is  only  about  sixty  pounds  per  square  inch.     These  pipes  are 


5 

used  for  the  purpose  of  distributing  cooled  brine  which  is  circulated  in  coils  located 
in  the  refrigerating  boxes  of  the  various  concerns  needing  such  accessories  in  their 
business,  such  as  produce,  butter  and  egg  merchants,  etc. 

The  rate  charged  by  the  company  for  such  service  varies  according  to  the  size 
of  the  box  and  the  season  of  the  year.  The  operations  of  the  company  at  present 
are  principally  in  the  vicinity  of  its  two  plants.  Several  conferences  have  been  held 
with  representatives  of  the  company,  and  it  has  been  stated  that  it  is  the  desire 
of  the  latter  to  obtain  a  franchise  in  the  two  districts  surrounding  the  plants  as  follows: 

District  Xo.  1.  Bounded  on  the  north  by  the  centre  line  of  Beach  street,  on  the 
west  by  the  centre  line  of  Hudson  street,  on  the  south  by  the  centre  line  of  Franklin 
street  and  on  the  east  by  the  centre  line  of  Varick  street. 

District  No.  2.  Bounded  on  the  north  by  the  centre  line  of  Harrison  street, 
between  Greenwich  and  Washington  streets;  on  the  west  by  an  irregular  line  formed 
by  the  centre  lines  of  Washington  street  and  Jay  street,  the  westerly  line  of  West 
street,  the  centre  lines  of  Duanc  street,  Washington  street,  Warren  street  and  Green- 
wich street;  on  the  south  by  the  centre  lin^.-  of  Murray  street,  b::tween  Greenwich 
street  and  West  Broadway,  and  on  the  east  by  an  irregular  line  formed  by  the  centre 
line  of  West  Broadway,  the  centre  line  of  Hudson  street,  the  centre  line  of  Duane 
street  prolonged  in  a  straight  line  to  Hudson  street  and  the  centre  line  of  Greenwich 
street,  with  the  further  privilege  of  extending  either  of  the  aforesaid  districts  within 
the  limits  of  a  larger  district  bounded  as  follows : 

District  No.  3.  Bounded  on  the  north  by  the  centre  line  of  Hubert  street,  on 
the  west  by  the  westerly  line  of  West  street,  on  the  south  by  the  centre  line  of 
Murray  street,  on  the  cast  by  an  irregular  line  formed  by  the  centre  lines  of  West 
Broadway,  Varick  street.*  Beach  street  and  Hudson  street. 

A  similar  provision  allowing  for  extensions  was  included  in  thi.  grant  to  the 
Harrison  Street  Company,  and  seems  to  be  desirable  in  grants  of  this  kind,  by  reason 
of  the  clause  in  the  contract  requiring  the  companies  to  ■furnish  service  to  all  appli- 
cants located  within  the  district  for  which  the  franchise  is  granted.  It  would  be 
physically  impossible  for  the  companies  to  do  this  in  the  larger  district,  on  account 
of  the  limitations  of  their  plants,  and  the  additional  privilege  allowing  for  extensions 
from  time  to  time  permits  the  companies  to  follow  the  trend  of  the  produce  district, 
the  location  of  which  is  changing,  and,  while  it  cannot  be  definitely  fixed,  will  probably 
be  within  the  lines  of  the  larger  district 

The  companies  are  thus  relieved  of  the  necessity  of  applying  for  further  fran- 
chises when  desiring  to  add  to  their  districts  and  arc  saved  the  attending  expense  of 
advertising,  which  is  considerable. 

Conditions  of  the  Prol>oscd  Griini. 
Previous  grants  of  a  similar  nature  to  the  one   now  proposed  have   been   made 
to   the   Seaboard  Refrigeration   Company,   the   Kings   County   Refrigerating   Company 


and  the  Harrison  Street  Cold  Storage  Company,  and  the  provisions  of  the  present 
grant  follow  closely  those  of  the  former  grants.  These  conditions,  briefly  stated,  are 
as  fol'cws: 

The  company  to  be  granted  the  rij;ht  to  construct  and  maintain  its  conduits 
within  the  two  smaller  districts  described  in  the  contract  as  No.  1  and  No.  2,  with 
the  right  to  e.xtcnd  either  district  within  the  lines  of  the  larger  district  known  as 
district  No.  3  upon  written  .application  tc  tlic  I'.oard. 

The  duration  of  the  contract  not  to  exceed  iVftien  years,  with  the  privilege  of  a 
renewal  for  a  further  term  of  ten  years  on  a  revaluation. 

The  rights  granted  to  be  subject  to  all  right,  title  and  interest  which  the  abuttin;^ 
property  owners  may  have  in  the  streets. 

The  grant  not  to  be  exclusive. 

All  work  of  construction  to  be  under  the  supervision  of  the  President  of  the 
Borough  of  Manhattan  and  the  Commissioner  of  Water  Supply,  Gas  and  Electricity 
and  to  be  done  in  such  a  manner  as  these  officials  niay  prescribe. 

The  company  to  bear  the  cost  of  construction,  as  well  as  any  expense  incurred  by 
the  City  in  altering  any  of  its  subsurface  structures  on  account  of  the  company's 
conduits  in  the  streets. 

The  cdiuluits  arc  not  lo  interfere  with  the  prosecution  of  any  public  work,  and 
if  found  to  do  so  shall  be  relocated  at  the  company's  expense. 

The  pipes  within  the  conduits  to  be  tested  before  or  after  Ix'ins  l.iid,  under  the 
direction  of  the  Commissioner  of  Water  Supply,  Gas  and  Kleetricity.  If  the  test  be 
made  at  the  foundry  the  maximum  pressure  lo  which  they  shall  be  subjected  is 
three  hundred  pounds  per  square  inch;  if  in  the  field  ready  for  use,  the  maximum 
pressure  to  be  two  hundred  pounds  per  square  incli.  These  maximums  were  sug- 
gested by  the  Commissioner  of  Water  Supply,  Gas  and  Electricity,  to  whom  the  matter 
was  submitted. 

The  company  shall  be  required  to  extend  its  system  to  the  premises  of  any 
applicants  located  within  citlier  of  the  smaller  districts  and  furnish  refrigeration 
thereto.  If  either  of  the.se  districts  be  extended,  the  same  obligation  to  attach  to  the 
additional  territory.  On  account  of  the  impracticability  of  pumping  the  brine  above 
the  first  floor  of  buildings  located  at  a  distance  from  the  company's  plants,  this  com- 
pulsory service  has  been  restricted  to  the  first  or  ground  floor. 

The  schediilc  of  rales  which  the  company  may  charge  for  service  is  as  follows: 
Consumers  making  mnnlbly  contracts,   four  cents  per  month   per  cubic  foot   for 
I)Oxes  of  not  over  500  cubic   feci :   two  cents  per  month   piT  cubic  foot   for  boxes  of 
500  to  1,500  cubic  feet,  and   one  cent   per  month   per  cubic   fnot    for  boxes  of   1,500 
cubic  feet  and  over. 

Consumers  making  yearly  contracts,  fifteen  cents  per  year  per  cubic  foot  of  box. 


Coiitpensation. 

It  is  suggested  that  the  compensation  for  the  proposed  grant  be  fixed  as  follows: 

Initial  payment,  $2,000. 

Annual  payments : 

During  the  first  five  years,  two  per  cent,  of  the  gross  receipts,  which  shall  not 
be  less  than  $800. 

During  the  second  five  year.^,  three  per  cent,  of  the  gross  receipts,  which  shall 
not  be  less  than  $1,200. 

During  the  third  five  years,  '.hrcc  per  cent,  of  the  gross  receipts,  which  shall  not 
be  less  than  $1,500. 

Twenty-five  cents  per  linear  foot  of  conduit  and  two  dollars  for  each  manhole 
constructed  within  the  limits  of  the  streets. 

The  payment,  within  thirty  days  from  the  date  on  which  this  contract  is  signed 
l)y  the  Mayor,  of  the  sum  of  $2,500.  which  is  due  the  City  by  reason  of  the  past  use  and 
occupation  of  the  streets. 

This  compensation  is  such  as  tlie  company,  through  its  representatives,  has  declared 
•tself  willing  to  pay. 

A  proposed  form  of  contract,  containing  a'.I  the  aforesaid  terms  and  conditions, 
was,  on  June  10,  submitted  to  the  company.  Under  date  of  June  13  a  communication 
was  received  from  the  latter,  containing  its  approval  thereof. 

.\  copy  of  the  contract  wa?  also  submitted  to  the  Corporation  Counsel,  and, 
under  date  of  June  IS,  a  communication  was  received  from  him  approving  the  same 
as  to  form. 

The  proposed  form  of  contract  is  attached  hereto. 

.Should  the  Board  desire  to  grant  the  franchise.  I  would  recommend  that  it  tenta- 
'ively  approve  the  form  of  contract,  direct  that  the  same  be  .spread  upon  the  minutes 
for  thirty  days,  and  fix  Friday.  September  16,  191(1,  as  a  date  for  the  final  hearing. 
anil  ro(|uest  the  Mayor  to  designate  two  daily  papers  in  which  the  contract  and  notice 
of  the  hearing  shall  be  published. 

Respectfully, 

HARRY  r.  N'ICIIOLS,  Engineer  in  Charge. 


Synopsis  of  Provisions  of  Contract. 

ivttiuii  I.     Grant  of  franchise;  boundaries  of  districts. 

Sec.  2. 

First — Term  of  grant  with  customary  provisions  for  renewal. 

Second — Compensation  to  City.     N'ot  to  he  ccnsidcreJ  in  the  nature  of  a  tax. 

Third — .-\nnua'.  charges  to  be  maintained  throughout  term  of  contract  or  renewal. 

Fourth — Rights  not  exclusive. 

Fiftli — Rights  not  to  be  assigned  without  consent  of  City. 

Sixth — When  rights  cease,  all  construction  in  streets  .to  become  properly  of 
City,  or  City  may  order  Company  to  remove  same. 

Seventh — Grant  subject  to  rights  of  abutting  property  owners. 

Eighth — Construction  to  be  done  under  terms  and  conditions  to  be  imposed  by 
President  of  Borough  of  ^fanhattan  and  Commissioner  of  Water  Supply,  Gas  and 
Electricity. 

Ninth — Expense  of  alterations  to  sewerage  or  drainage  system  to  be  borne  by  the 
Company. 

Tenth — Construction  and  operation  not  to  interfere  with  anv  public  work. 

Eleventh — Company  to  keep  pavement  in  repair  for  one  year  after  replacement. 

Twelfth — Expense  of  construction  and  inspection  to  be  borne  by  Company. 

Thirteenth — Company  to  make  a' test  of  pipes  when  required. 

Fourteenth — Schedule  of  rates  to  be  cliarged  consumers. 

Fifteenth — Company  to  furnish  refrigeration  to  applicants. 

Sixteenth — Company  to  furnish  to  the  Board,  annually,  a  map  showing  con- 
struction. 

Seventeenth — Conduits  to  be  used  only  by  the  Company  i-.nd  for  refrigeration 
purposes. 

Eighteenth — Conipapy  to  submit  annual  report  to  Roard. 

Nineteenth — Company  to  keep  accurate  books  of  account  and  submit  annual  report 
to  Comptroller. 

Twentieth — City  may  sue  for  forfeiture  of  contract. 

Twenty-first — Penalty  for  inefficient  public  service. 

Twenty-second — Company  to  assume  all  liability  for  damages. 


Twenty-third — Security  deposit.     Penalty  for  non-compliance  with  terms  of  con- 
tract.    Procedure  for  collection  of  penalties. 

Twenty-fourth — Definition  of  words  "notice"  and  "direction." 

Twenty-fifth — Definition  of  words  "streets"  and  "avenues." 

Twenty-sixth — If  powers  of  Board   or  other  authorities  named   in   contract   are 
transferred  to  other  Board  or  authorities,  then  the  latter  to  act  for  City. 

Sec.  3.    Covenant  on  part  of  Company  to  comply  with  contract 


lO 


MERCHANTS'  REFRIGERATING  COMPANY. 

PROPOSED  FORM  OF  CONTRACT. 


This  contract,  made  this  day  of  ,  19    ,  l)y  and  between  The  City 

of  New  York  (hereinafter  called  the  City),  party  of  the  first  part,  by  the  Mayor  of 
said  City,  acting  for  and  in  the  name  of  said  City,  under  and  in  pursuance  of  the 
authority  of  the  Board  of  Estimate  and  Apportionment  of  said  City  (.hereinafter  called 
the  Board),  and  the  Merchants'  Refrigerating  Conlpany  (hereinafter  called  the  Com- 
pany), party  of  the  second  part,  witnesseth : 

In  consideration  of  the  mutual  covenants  and  agreements  herein  contained,  the 
parties  hereto  do  hereby  covenant  and  agree,  as  follows : 

Section  1.  The  City  hereby  grants  to  the  Company,  subject  to  the  conditions  and 
provisions  hereinafter  set  forth,  the  right  and  privilege  to  construct,  maintain  and 
operate  certain  conduits  with  the  necessary  branches  and  extensions  therefrom,  lead- 
ing directly  into  private  property,  for  the  sole  purpose  of  supplying  refrigeration  to 
consumers,  provided  that  no  conduit  be  of  a  greater  outside  diameter  than  twelve  (12) 
inches,  including  insulation  or  other  covering ;  the  same  to  be  constructed  and  operated 
only  beneath  the  surface  of  such  of  the  streets,  avenues  and  highways  situate  within 
the  Borough  of  Manhattan,  City  of  New  York,  as  are  included  within  the  districts 
bounded  and  described  as  follows: 

District  Number  1. 

Bounded  on  the  north  by  the  centre  line  of  Beach  street ;  on  the  west  by  the  centre 
line  of  Hudson  street;  on  the  south  by  the  centre  line  of  Franklin  street,  and  on  the 
east  by  the  centre  line  of  Varick  street. 

District  Number  2. 

Bounded  on  the  north  by  the  centre  line  of  Harrison  street,  between  Greenwich 
and  Washington  streets;  on  the  west  by  an  irregular  line  formed  by  the  centre  lines  of 
Washington  street  and  Jay  street,  the  westerly  line  of  West  street  and  the  centre  lines 
of  Duane  street,  Washington  street,  Warren  street  and  (Jreenwich  street ;  on  the 
south  by  the  centre  line  of  Murray  street,  between  Greenwich  street  and  West  Broad- 
way, and  on  the  east  by  an  irregular  line  formed  by  the  centre  line  of  West  Broad- 
way, the  centre  line  of  Hudson  street,  the  centre  line  of  Duane  street,  prolonged  in  a 
straight  line  to  the  centre  line  of  Hudson  street,  and  the  centre  line  of  Greenwich 
street. 


II 

Provided,  however,  that  upon  written  application  to  the  Board  by  the  Company,  the 
Board  may,  by  resolution,  extend  the  lines  of  either  of  the  districts  hereinabove  de- 
scribed to  all  or  any  part  of  a  district  bounded  and  described  as  follows: 

District  Number  3. 

Bounded  on  the  north  by  the  centre  line  of  Hubert  street ;  on  the  west  by  the 
westerly  line  of  West  street ;  on  the  south  by  the  centre  line  of  Murray  street ;  on  the 
east  by  an  irregular  line  formed  by  the  centre  lines  of  West  Broadway,  Franklin 
street,  Varick  street.  Beach  street  and  Hudson  street. 

All  of  which  districts  being  more  particularly  shown— Districts  Numbers  1  and  2 
by  full  red  lines,  and  District  Number  3  by  dashed  red  lines — on  a  map  entitled 

"Map  showing  districts  applied  for  by  the  Merchants'  Refrigerating  Com- 
pany to  accompany  petition  dated  January  27,  1910,  to  the  Board  of  Estimate  and 
Apportionment,  City  of  New  York." 

— signed  by  Frank  A.  Home,  Secretary,  a  copy  of  which  is  hereto  annexed  and  made 
a  part  of  this  contract. 

Should  either  of  the  districts  known  as  District  Number  1  and  District  Number  2 
be  extended,  as  hereinbefore  provided,  then  the  terms  and  conditiotis  of  this  contract 
shall  apply  to  such  extended  districts. 

Sec.  2.  The  grant  of  this  privilege  is  subject  to  the  following  conditions,  which 
shall  be  complied  with  by  the  Company: 

First— The  ,said  right  to  construct,  maintain  and  operate  said  conduits  shall  be 
held  and  enjoyed  by  the  Company  for  the  term  of  fifteen  (IS)  years  from  the  date 
upon  which  this  contract  is  signed  by  the  Mayor,  with  the  privilege  of  renewal  of  said 
contract  for  the  further  period  of  ten  (10)  years,  upon  a  fair  revaluation  of  such  right 
and  privilege. 

If  the  Company  shall  determine  to  exercise  its  privilege  of  renewal  it  shall  make 
application  to  the  Board,  or,  any  authority  which  shall  be  authorized  by  law  to  act  for 
the  City  in  place  of  the  Board.  Such  application  shall  be  made  at  any  time  not  earlier 
than  two  (2)  years  and  not  later  than  one  (1)  year  before  the  expiration  of  the 
original  term  of  this  contract.  The  determination  of  the  revaluation  shall  be  sufficient 
if  agreed  to  in  writing  by  the  Company  and  the  Board,  but  in  no  case  shall  the  annual 
rate  of  compensation  to  the  City  be  fixed  at  a  less  amount  than  the  sum  required  to 
be  paid  during  the  last  year  prior  to  the  termination  of  the  original  term  of  this 
contract. 

If  the  Company  and  the  Board  shall  not  reach  such  agreement  on  or  before  the 
day  one  (1)  year  before  the  expiration  of  the  original  term  of  this  contract,  then  the 
annual  rate  of  compensation  for  such  succeeding  ten  (10)  years  shall  be  reasonable 
and  either  the  City  (by  the  Board)  or  the  Company  shall  be  bound  upon  request  of  the 
other  to  enter  into  a  written  agreement  with  each  other  fixing  the  rate  of  such  com- 


12 

pensation  at  such  amount  as  shall  be  reasonable,  but  in  no  case  shall  the  annual  rate 
so  fixed  be  less  than  the  sum  required  to  be  paid  for  the  last  year  prior  to  the  termina- 
tion of  the  original  term  of  this*- contract,  and  if  the  parties  shall  not  forthwith  agree 
upon  what  is  reasonable,  then  the  parties  shall  enter  into  a  written  agreement  fixing 
such  annual  rate  and  at  such  amount  as  shall  be  determined  by  three  disinterested 
freeholders  selected  in  the  following  manner: 

One  disinterested  freeholder  shall  be  chosen  by  the  Board ;  one  disinterested  free- 
holder shall  be  chosen  by  the  Company;  these  two  shall  choose  a  third  disinterested 
freeholder,  and  the  three  so  chosen  shall  act  as  appraisers  and  shall  make  the  revalua- 
tion aforesaid.  Such  appraisers  shall  be  chosen  at  least  six  (6)  months  prior  to  the 
expiration  erf  this  original  contract,  and  their  report  shall  be  filed  with  the  Board 
within  three  (3)  months  after  they  are  chosen.  They  shall  act  as  appraisers 
and  not  as  arbitrators.  They  may  'base  their  judgment  upon  their  own 
experience  and  upon  such  information  as  they  may  obtain  by  inquiries 
and  investigations,  without  the  presence  of  cither  party.  They  shall  have  the  right 
to  examine  any  of  the  books  of  the  Company  and  its  officers  under  oath.  The  valua- 
tion so  ascertained,  fixed  and  determined  shall  be  conclusive  upon  both  parties,  but 
no  annual  sum  shall,  in  any  event,  be  less  than  the  sum  required  to  be  paid  for  the 
last  year  of  this  original  contract.  If  in  any  case  the  annual  rate  shall  not  be  fixed 
prior  to  the  termination  of  the  original  term  of  this  contract,  then  the  Company  shall 
pay  the  annual  rate  theretofore  prevailing  until  the  new  rate  shall  be  determined,  and 
shall  then  make  up  to  the  City  the  amount  of  any  excess  of  the  annual  rate  then 
determined  over  the  previous  annual  rate.  The  compensation  and,  expenses  of  the 
said  appraisers  shall  be  borne  jointly  by  the  City  and  the  Company  each  paying  one- 
half  thereof. 

Second— The  Company  shall  pay  to  the  City  for  the  privilege  hereby  granted  the 
following  sums  of  money : 

(a)  The  sum  of  two  thousand  dollars  ($2,000)  in  cash  within  one  (I)  month 
after  the  date  on  which  this  contract  is  signed  by  the  Mayor,  and  before  anything  is 
done  in  exercise  of  the  privilege  hereby  granted. 

(b)  During  the  first  term  of  five  years,  an  annual  sum  whicli  shall  in  no  case  be 
less  than  eight  hundred  dollars  ($800).  and  which  shall  be  equal  to  two  (2)  per  cent, 
of  its  gross  annual  receipts,  if  such  percentage  shall  exceed  the  sum  of  eight  hundred 
dollars  ($800). 

Ehiring  the  second  term  of  five  years,  an  amiual  sum  which  shall  in  no  case  be 
less  than  twelve  hundred  dollars  ($1,200).  and  which  shall  be  equal  to  three  (3)  per 
cent,  of  its  gross  annual  receipts,  if  such  percentage  shall  exceed  the  sum  of  twelve 
hundred  dollars  ($1,200). 

During  the  third  term  of  five  years,  an  annual  sum  which  shall  in  no  case  be  less 
than  fifteen  hundred  dollars  ($1,500),  and  which  shall  be  equal  to  three  (3)  per  cent. 


13 

of  its  gross  annual  receipts  if  such  percentage  shall  exceed  the  sum  of  fifteen  hundred 
dollars  ($1,500). 

The  gross  receipts  mentioned  above  shall  be  the  total  receipts  ■from  all  business  of 
furnishing  refrigeration  to  consumers. 

(c)  An  annual  paj'ment  of  twenty-five  cents  ($0.25)  for  each  linear  foot  of 
conduit  constructed  within  the  limits  of  any  street,  avenue  or  highway,  excepting,  how- 
ever, such  conduits  as  are  constructed  within  the  vault  space  or  vault  spaces  of  any 
building  or  buildings  used  or  occupied  exclusively  by  the  Company  •for  the  purpose^ 
of  its  "business. 

An  annual  payment  of  two  dollars  ^$2)  for  each  manliole  constructed  within  the 
limits  of  any  street,  avenue  or  highway 

The  annual  charges  shall  commence  from  ihe  date  upon  which  this  contract  is 
signed  by  the   Mayor. 

All  annual  charges  as  above  shall  be  paid  into  the  Treasury  of  the  City  on  Feb- 
ruary 1  of  each  year  and  shall  be  for  the  amount  due  to  December  31  next  preceding. 
Provided  that  the  first  annual  payment  shall  be  only  for  that  proportion  of  the  first 
annual  charge  as  the  time  between  the  date  upon  which  this  contract  is  signed  by  the 
Mayor  and  December  31   following  shall  bear  to  the  whole  of  one  year. 

Whenever  the  percentage  required  to  be  paid  shall  exeee  1  the  minimum  amount 
as  above,  then  such  sum  over  and  above  such  mii'inunn  shall  lie  paid  on  or  before 
February  1  in  each  year  for  the  year  ending  December  31  next  preceding. 

(d)  Before  any  rights  hereby  conferred  are  exercised  by  the  Company  and  within 
one  (1)  month  from  the  date  on  which  this  contract  is  signed  by  the  Mayor,  the 
Company  shall  pay  to  the  City  the  sum  of  two  thousand  five  hundred  dollars  ($2,500)  ; 
said  amount  being  due  the  City  by  reason  of  the  unauthorized  occupation  of  the  streets 
by  the  Company  or  its  predecessors. 

Any  and  all  payments  to  be  made  by  the  terms  of  this  contract  to  the  City  by 
the  Company  shall  not  be  considered  in  any  manner  in  the  nature  of  a  tax,  but  such 
payments  shall  be  made  in  addition  to  any  and  all  taxes  of  whatsoever  kind  or 
description,  now  or  hereafter  required  to  be  paid  by  any  ordinance  of  the  City,  or 
resolution  of  the  Board,  or  any  law  of  the  State  of  New  York. 

Third — ^The  annual  charges  or  payments  shall  continue  throughout  the  whole 
term  of  this  contract  (whether  original  or  renewal),  notwithstanding  any  clause  in 
any  statute  or  in  the  charter  of  any  other  company  providing  for  payments  for  re- 
frigerating rights  or  franchises  at  a  different  rate,  and  no  assigrunent,  lease  or  sub- 
lease of  the  rights  or  privileges  hereby  granted  (whether  original  or  renewal),  or 
of  any  part  thereof,  or  of  any  of  the  streets  and  avenues  mentioned  herein,  or  of 
any  part  thereof,  shall  be  valid  or  effectual  for  any  purpose  unless  the  said  assign- 
ment, lease  or  sublease  shall  contain  a  covenant  on  the  part  of  the  assignee  or  lessee 
that  the  same  is  subject  to  all  conditions  of  this  contract;  and  that  the  assignee  or 


14 

lessee  assumes  and  will  be  bound  by  all  of  said  conditions,  and  especially  said  con- 
ditions as  to  payments,  anything  in  any  statute  or  in  the  charter  of  such  assignee 
or  lessee  to  the  contrary  notwithstanding,  and  that  the  said  assignee  or  lessee  waives 
any  more  favorable  conditions  created  by  such  statute  or  its  charter,  and  that  it  will 
not  claim  by  reason  thereof  or  otherwise  exemption  from  liability  to  perform  each 
and  all  of  the  conditions  of  this  contract. 

Fourth — Nothing  in  this  contract  shall  be  deemed  to  affect  in  any  way  the  right 
of  the  City  to  grant  to  any  individual,  firm  or  other  corporation  a  similar  right  or  privi- 
lege upon  the  same  or  other  terms  and  conditions,  over  ihc  same  streets  and  avenues, 
or  within  the  districts  hereinbefore  described. 

Fifth — The  rights  and  privileges  herc^by  granted  shall  not  be  assigned,  either  in 
whole  or  in  part,  or  leased  or  sublet  in  any  manner,  nur  shall  the  title  thereto,  or 
right,  interest  or  property  therein,  pass  to  or  vest  in  any  other  person  or  corporation 
whatsoever,  either  by  the  act  of  the  Company  or  by  operation  of  law,  whether  under 
the  provisions  of  the  statutes  relating  to  the  consolidation  or  merger  of  corporations 
or  otherwise,  without  the  consent  of  the  City,  acting  by  the  Board,  evidenced  by  an 
instrument  under  seal,  anything  herein  contained  to  the  contrary  thereof  in  anywise 
notwithstanding,  and  the  granting,  giving  or  waiving  of  any  one  or  more  of  such  con- 
sents shall  not  render  unnecessary  any  subsequent   consent   or  consents. 

Sixth— Upon  the  termination  of  this  original  contract,  or  if  the  same  be  renewed, 
then  at  the  termination  of  the  said  renewal  term,  or  upon  the  termination  of  the 
rights  hereby  granted  for  any  cause,  or  upon  the  dissolution  of  the  Company  before 
such  termination,  the  conduits  and  appurtenances  of  the  Company  constructed  pur- 
suant to  this  contract  within  the  streets  and  avenues  shall  become  the  property  of  the 
City  without  cost,  and  the  same  may  be  used  or  disposed  of  by  the  City  for  any  pur- 
pose whatsoever,  or  the  same  may  be  leased  to  any  company  or  individual. 

If,  however,  at  the  termination  of  this  contract  as  above,  the  Board  shall  so  order 
by  resolution,  the  Company  shall,  upon  thirty  (30)  days'  notice  from  the  Board, 
remove  any  and  all  of  its  conduits  and  appurtenances  constructed  pursuant  to  thii 
contract  and  the  said  streets  and  avenues  shall  be  restored  to  their  original  condition 
at  the  sole  cost  and  expense  of  the  Company. 

Seventh— The  grant  of  this  privilege  is  subject  to  whatever  right,  title  or  in- 
terest the  owners  of  abutting  property  or  others  may  have  in  and  to  the  streets 
and  avenues  in  which  the  Company  is  hereby  authorized  to  operate. 

Eighth— All  construction  which  shall  be  made  under  this  grant  shall  be  done  in 
a  manner  solely  upon  the  terms  and  conditions  hereafter  to  be  imposed  by  the  Presi- 
dent of  the  Borough  of  Manhattan  and  the  Commissioner  of  Water  Supply,  Gas 
and  Ellectricity,  or  their  respective  successors  in  authority.  The  said  Company  shall 
submit  a  working  plan  of  construction  to  the  said  President  and  to  the  said  Com- 
missioner, which  shall  include  and  show  in  detail  the  method  of  construction  of  said 
conduit  line,  connections,  manholes  and   other  appurtenances,   and  the  mode  of  pro- 


IS 

tection  of  all  subsurfaces  construction  under  the  streets  and  avenues  in  which  the 
Company  is  hereby  authorized  to  operate. 

Ninth — Any  alteration  to  the  sewerage  or  drainage  system,  or  to  any  other  sub- 
surface or  to  any  surface  structures  in  the  streets,  required  on  account  of  the  con- 
struction or  operation  of  the  conduits  of  the  Company,  shall  be  made  at  the  sole 
cost  of  the  Company,  and  in  such  manner  as  the  proper  City  officials  may  prescribe. 

Tenth— It  is  agreed  that  the  right  hereby  granted  shall  not  be  in  preference  or 
in  hindrance  to  public  work  of  the  City,  and  should  the  said  conduits  in  any  way 
interfere  with  the  construction  of  public  works  in  the  streets  and  avenues,  whether 
the  same  is  done  by  the  City  directly  or  by  a  contractor  for  the  City,  the  Company 
shall,  at  its  own  expense,  protect  or  move  the  conduits  and  appurtenances  in  the 
manner  directed  by  the  City  officials  having  jurisdiction  over  such  public  work. 

Eleventh — The  Company  shall  bear  the  expense  of  keeping  in  repair  for  one 
year  after  it  has  been  replaced,  all  pavement  which  may  at  any  time  be  removed  by 
said  Company,  either  for  the  purpose  of  construction  or  for  the  repairing  of  the 
conduit  line  and  its  appurtenances. 

Twelfth — The  Company  shall  bear  the  expense  of  inspection  which  may  be  re- 
quired by  the  President  of  the  Borough  of  Manhattan  and  the  Commissioner  of 
Water  Supply,  Gas  and  Electricity,  and  of  all  work  of  construction. 

Thirteenth — The  Company  shall  cause  a  test  to  be  made  of  the  pipes  to  be  con- 
tained within  the  conduits  hereby  authorized  whenever  required  by  and  under  the 
supervision  of  the  Commissioner  of  Water  Supply,  Gas  and  Electricity.  The  condi- 
tions of  such  test  shall  be  as   follows : 

(a)  If  the  test  be  made  in  the  foundry  where  the  pipes  are  manufactured,  such 
pipes  shall  be  subjected  to  a  pressure  of  three  hundred  (300)  pounds  per  square 
inch. 

(lb)  If  the  test  be  made  in  the  field,  of  pipes  in  use  or  ready  for  use,  such  pipes 
shall  be  subjected  to  a  pressure  of  two  hundred   (200)   pounds  per  square  inch. 

A  certificate  showing  that  such  a  test  has  been  made  without  injury  to  the  pipes 
shall  be  executed  by  an  officer  of  the  Company,  and  indorsed  by  the  Commissioner 
of  Water  Supply,  Gas  and  Electricity,  and  filed  with  the  Board. 

Fourteenth — 'The  Company  shall  not  charge  consumers  more  than  the  following 
rates : 

(a)   Consumers  making  monthly  contracts: 

Four  (4)   cents  per  month  per  cubic  foot  for  boxes  of  not  over  500  cubic 
feet; 

Two  (2)  cents  per  month  per  cubic  foot  for  boxes  of  over  500  cubic  feet, 
but  less  than  1,5(X)  cubic  feet ; 

One  (1)   cent  per  month  per  cubic  foot  for  boxes  of  1,500  cubic  feet  and 
over. 


i6 

(b)     Consumers  making  yearly  contracts: 

Fifteen  (IS)  cents  per  year  per  cubic  foot  of  box. 
These  rates  to  apply  to  boxes  located  not  above  the  first  floor  of  any  building. 
During  the  term  of  this  contract  the  Board  shall  have  absolute  power  to  regulate 
the  maximum  rates,  provided  that  such  rates  shall  be  reasonable  and  fair. 

Fifteenth— The  Company,  upon  the  application  for  refrigeration  of  any  person,  firm 
or  corporation  whose  premises  are  located  within  Districts  Numbers  1  and  2,  or  if 
such  districts  be  extended  as  hereinbefore  provided,  then  within  such  extended  dis- 
tricts, shall  extend  its  conduits  to  such  premises  and  furnish  to  said  applicant  re- 
frigeration at  the  rates  herein  prescribed  or  at  such  rates  as  may  be  hereafter  fixed 
by  the  Board  as  herein  provided.  The  Company  shall  not  be  required,  however,  to 
furnish  refrigeration  to  applicants  whose  premises  are  located  above  the  first  floor  of 
any  building. 

Sixteenth — A  correct  map  shall  be  furnished  to  the  Board  by  the  Company  on  the 
first  day  of  February,  1911,  showing  the  exact  location  of  all  conduit  lines  and  man- 
holes constructed,  with  reference  to  the  street  lines,  the  curb  lines  and  the  street  sur- 
face, together  with  a  statement  of  the  total  length  of  such  conduit.  On  the  same 
date  of  each  succeeding  year,  during  the  term  of  this  contract,  a  supplementary  map 
shall  be  furnished  the  Board  showing  all  conduits  laid  during  the  preceding  year. 

Seventeenth — The  conduit  lines  hereby  authorized  shall  be  used  only  by  the  Mer- 
chants Refrigerating  Company,  and  for  no  other  purpose  than  supplying  refrigeration. 

Eighteenth — The  Company  shall  submit  a  report  to  the  Board  not  later  than 
February  1,  in  each  year,  for  the  year  ending  December  31  next  preceding,  and  at 
any  other  time,  upon  request  of  the  Board,  which  shall  state : 

1.  The  amount  of  stock  issued;   for  cash;   for  property. 

2.  The  amount  paid  in  as  by  last  report. 

3.  The  total  amount  of  capital  stock  paid  in. 

4.  The  funded  debt  hy  last  report. 

5.  The  total  amount  of  funded  debt. 

6.  The  floating  debt  as  by  last  report. 

7.  The  total  amount  of  floating  debt. 

8.  The   total    amount   of    funded   and    floating   debt. 

9.  The   average    rate   per   annum   of    interest   on    funded   debt. 

10.  Statement  of  dividends  paid  during  the  year. 

11.  Number  of   feet  of  conduit  now  laid. 

12.  The  total   amount  expended   for   same. 

13.  Amount,  kind  and  capacity  of  machinery  now  in  use  and  required  for  operation. 

14.  The  total  amount  expended  for  same. 


17 

15.  Quantity  of  refrigeration  procliiced  during  the  year  and  the  average  price  re- 
ceived for  same. 

16.  Quantity  used   in  Company's   own   warehouses. 

17.  Quantity  furnished   to  outside  consumers. 

18.  Number  and  location  of  wareliouses  occupied  by  the  Company,  exclusively  oi 
in  part,  and  the  extent  of  such  occupation  by  the  Company. 

19.  Xumber  of  outside  consumers  supplied. 

20.  Amounts  paid  by  Company  for  damages  to  persons  or  property  on  accuunc 
of  construction  and  operation. 

21.  Total  expenses  of  operation,  including  salaries. 

— and  such  other  information  in   regard  to  the  business  of  the  Company  as  may  be 
required   by  the   Board. 

Nineteenth — The  Company  shall  at  all  times  keep  accurate  books  of  account  of 
the  gross  earnings  from  the  privileges  granted  under  this  contract,  and  on  or  before 
February  1  in  each  year  shall  make  a  verified  report  to  the  Comptroller  of  The  City 
of  NewT  York  of  the  business  done  by  the  Company  for  the  year  ending  Deccrriber  31 
next  preceding,  as  he  may  prescribe.  Such  report  shall  contain  the  number  of  feet 
pf  conduit  laid  and  the  number  of  manholes  constructed  during  the  year,  and  also  a 
statement  of  the  gross  receipts  from  all  business  of  furnishing  refrigeration  to  con- 
sumers, together  with  such  other  information  and  in  such  detail  as  the  Comptroller  may 
require.  The  Comptroller  shall  have  access  to  all  books  of  the  Company  for  the  pur- 
pose of  ascertaining  the  correctness  of  its  report,  and  may  examine  its  officers  under 
oath. 

Twentieth — In  case  of  any  violation  or  breach  or  failure  to  comply  with  any  of 
the  provisions  herein  contained  or  with  any  orders  of  the  Board  acting  under  the 
powers  herein  reserved,  the  franchise  or  consent  herein  granted  may  be  forfeited  by 
a  suit  brought  by  the  Corporation  Counsel  on  notice  of  ten  days  to  the  Company,  or 
at  the  option  of  the  Board  by  resolution  of  said  Board,  which  said  resolution  may  con- 
tain a  provision  to  the  effect  that  the  conduits  constructed  and  in  use  by  virtue  of 
this  contract  shall  thereupon  become  the  property  of  the  City  without  proceedings  at 
law  or  in  equitj-.  Provided,  however,  that  such  action  by  the  Board  shall  not  be 
taken  until  the  Board  shall  give  notice  to  the  Company  to  appear  before  it  on  a 
certain  day  not  less  than  ten  (10)  days  after  the  date  of  such  notice  to  show  cause 
why  such  resolution  declaring  the  contract  forfeited  should  not  be  adopted.  In  case 
the  Company  fails  to  appear,  action  may  be  taken  by  the  Board  forthwith. 

Twenty-first— If  the  Company  shall  fail  to  give  efficient  public  service  at  the  rates 
herein  fixed,  or  fail  to  maintain  its  conduits  and  appurtenances  as  herein  provided  in 
good  condition  throughout  the  whole  term  of  this  contract,  the  Board  may  give  notice 


i8 

to  the  Company  specifying  any  default  on  the  part  of  the  Company,  and  requiring 
the  Company  to  remedy  tlic  same  within  a  reasnnable  time;  and  upon  failure  of  the 
Company  to  remedy  such  default  within  a  reasonable  time,  the  Company  shall,  for 
each  day  thereafter  during  whicli  the  default  or  defect  remains,  pay  to  the  City  the 
sum  of  fifty  dollars  ($50)  as  fixed  or  li(|uidatcd  damages,  or  the  Board,  in  case  such 
conduits  or  appurtenances  which  may  affect  the  surface  of  the  streets  shall  not  be 
put  in  g(M)d  condition  within  a  reasnnable  time  after  notice  by  the  Board  as  aforesaid 
shall  have  the  right  to  make  all  needed  repairs  at  the  expense  of  the  Company,  in 
which  case  the  Company  shall  pay  to  the  City  the  amount  of  the  cost  of  such  repairs, 
with  legal  interest  thereon,  all  of  which  sums  may  be  deducted  from  the  fund  here- 
inafter provided  for. 

Twenty-second — The  Company  shall  assume  all  liability  to  persons  or  property  by 
reason  of  the  construction  or  operation  of  the  conduits  authorized  by  this  contract, 
and  it  is  a  condition  of  this  contract  that  the  City  shall  assume  no  liability  whatsoever 
to  either  persons  or  property  on  account  of  the  same,  and  the  Company  hereby  agrees 
to  repay  to  the  City  any  damage  which  the  City  shall  be  compelled  to  pay  by  reason  of 
any  acts  or  default  of  the  Company. 

Twenty-third — ^This  grant  is  upon  the  express  condition  that  the  Company,  within 
thirty  (30)  days  after  the  signing  of  this  contract  by  the  Mayor,  and  before  anything 
is  done  in  exercise  of  the  rights  conferred  hereby,  shall  deposit  with  the  Comptroller 
of  the  City  the  sum  of  three  thousand  dollars  ($3,000),  either  in  money  or  securities,  to 
be  approved  by  him,  which  fund  shall  be  security  for  the  performance  by  the  Com- 
pany of  all  of  the  terms  and  conditions  of  this  contract  and  compliance  with  all  orders 
of  the  Board,  acting  under  the  powers  herein  reserved,  especially  those  which  relate 
to  the  payment  of  the  annual  charges  for  the  privilege  hereby  granted,  the  rendering 
of  efficient  public  service  at  the  rates  herein  fixed,  the  repairs  of  the  street  pavement 
and  the  maintenance  of  the  property  in  good  condition  throughout  the  whole  term  of 
this  contract,  and  in  case  of  default  in  the  performance  by  the  Company  of  such  terms 
and  conditions,  or  compliance  with  such  orders,  or  either  or  any  of  them,  the  City  shall 
have  the  right  to  cause  the  work  to  be  done  and  the  materials  to  be  furnished  for  the 
performance  thereof  after  due  notice,  and  shall  collect  the  reasonable  cost  thereof 
from  the  said  fund  without  legal  proceedings;  or  after  default  in  the  payment  of  the 
annual  charges,  shall  collect  the  same,  with  interest,  from  the  said  fund  after  ten  (10) 
days'  notice  to  the  Company ;  or  in  case  of  failure  to  observe  the  said  terms  and  con- 
ditions of  this  contract,  or  its  neglect  or  refusal  tc  comply  with  any  notice  or  direction 
of  the  Board,  or  other  municipal  officials,  given  or  made  pursuant  to  the  terms  of  the 
contract,  or  under  the  authority  of  any  laws  or  ordinances  now  or  hereafter  in  force 
in  such  case  and  in  any  of  these  events,  the  Company  shall  pay  to  the  City  a  penalty  of 
one  hundred  dollars  ($100)  for  each  violation,  which  sums  may  he  deducted  from  said 
fund. 


'9 

Tlic  procedure  for  the  imposition  and  collection  of  the  penalties  in  lliis  contract 
shall  be  as  follows : 

The  Board,  on  complaint  made,  shall  give  notice  to  the  Company,  directing  its 
President  or  other  officer  to  appear  before  the  Board  on  a  certain  day  not  less  than 
ten  (10)  days  after  tlie  date  of  such  notice,  to  show  cause  why  the  Company  should 
not  be  penalized  in  accordance  with  the  foregoing  provisions.  If  the  Company  fails 
to  make  an  appearance,  or  after  a  hearing  appears  in  the  judgment  of  the  Board  to  be 
in  fault,  said  Board  shall  forthwith  impose  the  prescribed  penalty,  or  where  the  amount 
of  the  penalty  is  not  prescribed  herein,  such  amount  as  appears  to  the  Board  to  be  just, 
and  without  legal  procedure  direct  the  Comptroller  to  withdraw  the  amount  of  such 
penalty  from  the  security  fund  deposited  with  him.  In  case  of  any  drafts  made  upon 
the  security  fund  the  Company  shall,  upon  ten  (10)  days'  notice  in  writing,  pay  to  the 
City  a  sum  sufficient  to  restore  said  security  fund  to  the  original  amount  of  three 
thousand  dollars  ($3,000),  and  in  default  thereof  this  contract  shall  be  canceled  and 
annulled  at  the  option  of  the  Board,  acting  in  behalf  of  the  City.  N'o  action  or  pro- 
ceeding or  rights  under  the  provisions  of  this  contract  shall  affect  any  other  legal 
rights,  remedies  or  causes  of  action  belonging  to  the  City. 

Twenty-fourth — The  words  "notice"  or  "direction."  wherever  used  in  this  contract, 
shall  be  deemed  to  mean  a  written  notice  or  direction.  Kvery  such  notice  or  direction 
to  be  served  upon  the  Company  shall  be  delivered  at  such  office  in  the  City  as  shall 
have  been  designated  by  the  Company,  or  if  no  such  office  shall  have  been  designated, 
or  if  such  designation  shall  have  for  any  reason  become  inoperative,  shall  be  mailed  in 
the  City,  postage  prepaid,  addressed  to  the  Company  at  the  City.  Delivery  or  mailing 
of  such  notice  or  direction  as  and  when  above  provided  shall  be  cqulvaletit  to  direct 
personal  notice  or  direction,  and  shall  be  deemed  to  have  been  given  at  the  time  of 
delivery  or  mailing. 

Twenty-fifth — The  words  "streets  or  avenues"  and  "streets  and  avenues,"  wherever 
used  in  this  contract,  shall  be  deemed  to  mean  "streets,  avenues,  highways,  parkways, 
driveways,  concourses,  boulevards,  bridges,  viaducts,  tunnels,  public  places  or  any  other 
property  to  which  the  City  has  title  or  over  which  the  publ-c  has  an  easement."  included 
in  tlie  districts  hereinabove  described,  and  under  the  surface  of.  or  in  which  authority 
is  hereby  given  to  the  Company  to  construct  or  maintain  its  conduits. 

Twenty-sixth— If  at  any  time  the  powers  of  the  Board  or  any  other  of  the  au- 
thorities herein  mentioned  or  intended  to  be  mentioned  shall  be  transferred  by  law  to 
any  other  Board,  authority,  officer  or  officers,  then  and  in  such  cast  such  other  Board, 
authority,  officer  or  officers  shall  have  all  the  powers,  rights  and  duties  herein  reserved 
to  or  prescribed  for  the  Board  or  other  authorities,  officer  or  officers. 

Sec.  3.  The  Company  promises,  covenants  and  agrees  on  its  part  and  behalf  to 
conform  to  and  abide  by  and  perform  all  the  terms,  conditions  and  requirements  in 
this  contract  fixed  and  contained. 


20 

In  witness  wlicrcof,  the  party  of  tlic  first  i):irl,  by  its  Mayor,  thereunto  duly  au- 
thorized by  tlie  Board  of  Estimate  and  Apportionment  of  said  City,  has  caused  the 
corporate  name  of  said  City  to  be  licreunto  signed  and  the  corporate  seal  of  said  City 
to  be  hereunto  affixed;  and  the  party  of  tlie  second  part,  by  its  officers,  thereunto  duly 
authorized,  has  caused  its  corporate  name  to  be  hereunto  signed  and  its  corporate  seal 
to  be  hereunto  affixed,  the  day  and  year  first  above  written. 

Till-:  CITY  OF  \KW   VOKK. 


IcoRiKWATE  SK.M..]  I!y  ,  Mayof. 

Attest: 

City  Clerk. 

MI-:RCI1  WIS'    R1I"KMr;i-,KA  I  l\(".    rOMI'AXY. 

[sF..\L.]  By  ,  President. 

Attest : 

Secretary. 

(Here  a<ld  acknowKilgnienls.) 


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D     000  529  215 


